Form Factor Roulette

On : April 19, 2019

This
projection from Cisco research confirms the obvious, yet raises some
questions. The obvious is the
spectacular flip as internet traffic switches from PCs to smartphones. That’s a trend we can see in our daily
lives. The questions arise around the
lateral projections for TVs and tablets. As connected TVs replace first
generation flat screens one would expect an increase in internet usage. These data show a decline. And with tablets,
one would expect them to gain secondary usage from the move to mobile although
the study authors may have assumed a decline in the form factor’s sales. Logic: If you have a big connected TV and
little connected phone, you may not see a need for the in-between product. Source: Cisco

A Chinese Turn About

On : April 16, 2019

In
an apparent turnaround, Chinese negotiators in the trade talks are not
objecting to the US complaints about “IP theft, forced technology transfer and
cyber hacking,” According to Larry
Kudlow, US Economic Advisor and lead negotiator in these talks, the Chinese are
willing to talk about the issues for the first time. That’s a major change and it could be the
enough to break the stalemate that has mired trade relations between the two
countries for many years.

For
those of us who want to sell into China, this is a significant turn, one that
could lower the competitive tensions between the countries. Should corrections become part of an
agreement, it could have long lasting effects for the exporting future. As they say, the devil will be in the
details. Source: CNBC

Strap In!

On : April 15, 2019

In
Malcolm Gladwell’s “Tipping Point” the spread of viruses is used to describe
the way in which quiet social trends build below the surface until they either
die off or they begin to snowball into massive social shifts.

Automation
has been one of those slowly growing forces that has been changing the world
quietly for decades. Example: the
American car industry in the late 1970s produced and sold about 12-13 million
cars a year with about 600,000 workers.
Forty years later in 2015-16 about 17 million cars were produced and
sold with about 400,000 workers.

It
was that slow automation burn that punched through in the US election of
2016. Worker discontent with
disappearing jobs – blamed on migration, but mostly fueled by the inexorable
force of automation – changed voting patterns and changed the direction of the
US in the world.

What’s
the future? At the World Economic Forum,
IBM’s Chair, CEO and President Ginni Rometty said, “I expect AI to change
100 percent of jobs within the next five to 10 years… as analytics and
artificial intelligence change job roles at companies in all industries.” If she’s half right, Rometty is seeing AI and
data analytics as the tipping point for what has been described as the Fourth
Industrial Revolution. Strap in, its
going to be a bumpy ride unless you’re on the correct side of revolution. Source: CNBC; Bidwin analysis

Three Mobile Trends for 2019

On : April 12, 2019

The move to mobile by consumers is naturally pulling
advertisers along. But the mobile medium
is very different from other digital media because of its small screen
size. The first and most obvious, smart
phone ads were banners. As the audience
gets more attuned to the medium, banners are losing their appeal, a fact that
drives the first trend: more engaging content including short videos.

The contrast between revenue sources for casual games verses
mid-core & strategy games is clear.
Casual games make money from in-app purchases while the more
sophisticated mid-core & strategy games see more revenue from
advertising. There is no indication from
the numbers that the 70-30 split in casual games is likely to change, but the
trend for the mid-core & strategy games flipped decisively toward more
advertising in last year’s second half.
Expect the trend to continue.

As the trend toward in-app advertising evolves, app
developers are going to need a higher level of support from the ad delivery
system. They are going to require two
key things: first, more transparent reporting that provides better audience
targeting and market insight and second, better, more integrated creatives that
engage their players without putting them off. Source: Adotas

Follow the Money to and from China

On : April 11, 2019

Consumer spending on mobile
games globally was $109.5 billion in 2018. The three biggest contributors to
that huge total were China, the US and Japan.
While Chinese game companies are raking in the money from consumers, giants
like Tencent are taking their winnings and investing in Western gamers like
Jagex and Outfit7. As China spreads its
presence among the game playing generation across the world, it is making its
cultural mark beyond its borders in the same way US movies and music has made
its cultural mark globally on an older generation. Source: Mobile Marketing

Retail Ad Spending Grew 40% in the Second Half of 2018

On : April 10, 2019

A breakout from Smaato of ad
spending by category for the second half of 2018 shows that 72% of all spending
came from two categories: retail and media.
All other categories combined to deliver the final 28% of dollars.

The big story was the 40%
growth in retail spending in the second half of the year compared to the frist
half. Total retail went from 35% to 49% fueled by online marketplaces Amazon and
Walmart, which together accounted for 28% of all ad spending. A lot of that
second half spending in retail was likely related to the holidays. Source: MarketingLand

The Past is Prologue

On : April 8, 2019

The industrial revolution of
the 19th century was humming along as titans of steel, energy and
railroads staged intramural battles for market supremacy unencumbered by
government regulation. Monopolies developed
and workers where stomped. The response
to out-of-control heavy industry was anti-trust and child labor law and unions.

Today we are seeing the end
of the laissez faire digital revolution. Pushed by ad fraud and hate speech the
IAB and Mark Zuckerberg are calling for a combination of voluntary and
government rule-making to bring under control the forces of this generation’s unbound
revolution.

It’s the way it has to
work. New industry has to be left alone
to grow in its beginning. But, after a
period of years, it will over step and it will always get ugly
before the forces of restraint step in.
Now is the time for our revolution to be reined in. The hope is that we
reach a balance between voluntary discipline and government regs without
tipping toward over-regulation. Source:
Bidwin analysis

The US isn’t that Mature

On : April 5, 2019

We never lose an opportunity
to show the data supporting the notion that mobile usage growth hasn’t slowed
even a little. It’s still charging
ahead, especially in the US. Now that’s
counter-intuitive because one might think that the emerging markets are adapting
at higher rates and that the US, a more mature mobile market, would be
slowing. But 170% increase in ad
requests tells a different story – the US isn’t that mature. Source:
MarTechAdvisor.com

Retail Ad Spending Grew 40% in the Second Half of 2018

On : April 4, 2019

A breakout from Smaato of ad
spending by category for the second half of 2018 shows that 72% of all spending
came from two categories: retail and media.
All other categories combined to deliver the final 28% of dollars.

The big story was the 40%
growth in retail spending in the second half of the year compared to the frist
half. Total retail went from 35% to 49% fueled by online marketplaces Amazon and
Walmart, which together accounted for 28% of all ad spending. A lot of that
second half spending in retail was likely related to the holidays. Source: MarketingLand

High-Tier Consumers Pull Back in China

On : April 4, 2019

Chinese consumers appear to
be pulling back according to a new survey sponsored by Credit Suisse and
conducted by Nielsen. Expectations were
14.3% lower in the 2018 survey as compared to 2017. Tony Wang, one of the authors commented, “…
Chinese consumers [are] less willing to spend across all categories, especially
on large-ticket items such as cars and property.”

Interestingly, consumer
sentiment in China’s lower-tier cities remains strong. Even luxury products continue to see high
purchase intentions. These are the cities
that have only recently begun to feel the advantages of China’s new economy –
in part a result of the Alibaba and JD.com expansion into the hinterland over
the last couple years. Source: South
China Morning Post